Overhaul child protection in Vic: inquiry

The revolving door of reuniting abused or neglected children with parents when it is not in a child's best interests must stop, the Victorian government says.

A panel headed by former Supreme Court judge Philip Cummins has made 90 recommendations to reform the state's child protection system.

Major areas of concern include deficiencies in out-of-home care, over-representation of indigenous children, an exodus of foster carers and the link between alcohol use and child abuse.

People working in religious organisations should be legally required to report suspected sexual or physical abuse of a young person by members in that group, except if that information is received during confession, the report says.

An investigation should also be launched into how religious groups respond to child abuse perpetrated by people within their ranks.

In its initial response to the inquiry, the state government committed $61.4 million over four years to recruit an additional 42 child protection workers, expand family support services in areas of extreme demand, and establish three new centres where police, child protection officers and counsellors will work together to address child sex abuse.

But the government has yet to set a deadline for a comprehensive response.

Some 2000 children reported to the Department of Human Services (DHS) in 2009/10 were the subject of more than 10 reports.

Of the 37,500 children reported, almost four in 10 of them had been the subject of an earlier substantiated case of abuse or neglect.

It often takes years for children who cannot be reunited with their parents to know who will be their permanent carer.

"It takes far too long for a child to achieve placement stability and this exposes too many children to additional trauma," the panel said in its report released on Tuesday.

"Barriers to applying Victoria's existing legal provisions for adoption and permanent care arrangements must be identified and removed."

Community Services Minister Mary Wooldridge said the government was keen to break the cycle of reunification with parents when it was not in the child's interests.

"We need to have a focus on ... the child and what's best for them rather than sometimes getting into this cycle of reunification that's not actually best for the children," she told reporters.

If currently circumstances continue, one quarter of children born in Victoria in 2011 will be reported to child protection by their 18th birthday.

Those living in the Loddon Mallee and Gippsland regions are almost twice as likely to be the subject of a report to DHS - between 61 and 66 per 1000 children - than those living elsewhere.

Ms Wooldridge said the government would tailor its child protection policies to local needs, rather than the current statewide approach.

The panel was highly critical of the instability and educational outcomes experienced by the 5600 children living in out-of-home care.

There were 279 allegations of abuse in care in 2009/10 and 185 were investigated. Fifty-six of the allegations were substantiated.

The government will cut 500 jobs from DHS over the next two years through natural attrition, voluntary redundancies and a recruitment freeze as part of its plan to axe 3600 public service positions.

Ms Wooldridge said frontline child protection workers would not be affected.

Opposition spokeswoman on child safety issues Danielle Green said the government must explain how the panel's recommendations would be implemented while public sector jobs were slashed.

The Centre for Excellence in Child and Family Welfare chief executive Dr Lynette Buoy said Victoria had lagged behind other states for some time in what it spends per child on family services, out-of-home care and child protection.

"That has to change and we have to get the balance between these areas right," she said.